Vroom, Inc. (VRM) AI Stock Analysis

• Market Cap: $155.21M
• Dividend Yield: N/A
• Average Volume (3M): 5.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: -90.19%
• EPS Growth: 79.52%
• Country: US
• Employees: 704
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Dealerships
• EPS (TTM): -1.73
• Shares Outstanding: 5,199,569
• 10 Day Avg. Volume: 4,891
• 30 Day Avg. Volume: 5,671
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.21
• Enterprise Value/Revenue: 16.81
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: -19.02
• 1Y Price Target: $27.00
• Price Target Upside: -9.55% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $27.00 ▼(-9.55% Downside)

Vroom, Inc. is facing significant financial difficulties, with declining revenues and high leverage being the most impactful factors. Technical analysis provides mixed signals, and valuation metrics are weak due to negative profitability. The absence of earnings call data and corporate events limits additional insights.

Vroom, Inc. Business Overview & Revenue Model

Company Description

Vroom, Inc. (VRM) is an innovative e-commerce platform dedicated to transforming the way people buy and sell used vehicles. The company operates in the automotive sector and primarily focuses on providing a seamless online car-buying experience. Vroom offers a wide selection of pre-owned vehicles, comprehensive vehicle inspection reports, and a user-friendly digital interface that allows customers to transact from the comfort of their homes. Additionally, Vroom provides financing options, warranties, and nationwide delivery services to enhance customer satisfaction.

How the Company Makes Money

Vroom, Inc. generates revenue primarily through the sale of used vehicles. The company's revenue model is centered around purchasing pre-owned cars, reconditioning them to meet its quality standards, and reselling them to consumers at a profit. Vroom also earns money from ancillary services such as vehicle financing, extended warranties, and insurance products, which are offered to customers during the purchasing process. Significant partnerships with financial institutions help facilitate these services, while strategic logistics partnerships enable efficient nationwide delivery. Vroom's earnings are influenced by market demand for used vehicles, pricing strategies, and the efficiency of its reconditioning and sales processes.

Vroom, Inc. Financial Statement Overview

Summary

Vroom, Inc. faces a challenging financial position with declining revenues, negative profitability, and high leverage. The income statement reflects operational inefficiencies, while the balance sheet shows high financial risk due to negative equity and high liabilities. Cash flow improvements are minimal and insufficient to offset the broader financial concerns.

Income Statement

Vroom, Inc. has experienced significant revenue volatility with a declining trend from 2021 to 2023. The gross profit margin for 2023 was 18.1%, showing a decrease from the previous year. The company has consistently reported negative net income, leading to a negative net profit margin of -185% in 2023. The EBIT and EBITDA margins were both negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial position for Vroom, Inc. The debt-to-equity ratio is negative due to negative stockholders' equity, indicating financial instability. The equity ratio for 2023 was -2.1%, reflecting a significant reliance on debt financing. Overall, the company's balance sheet suggests a high risk due to excessive liabilities compared to its equity.

Cash Flow

Cash flow analysis reveals a challenging liquidity situation with negative operating and free cash flows. The operating cash flow to net income ratio for 2023 was mildly improved but still negative, suggesting inefficiencies in converting revenue into cash. However, Vroom, Inc. managed to slightly reduce its negative free cash flow in 2023 compared to 2022, indicating marginal improvements in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.89M	11.61M	893.20M	1.95B	3.18B	1.36B
Gross Profit	126.33M	11.61M	161.95M	244.79M	202.10M	71.55M
EBITDA	-34.37M	-43.11M	-83.61M	-307.00M	-334.99M	-188.41M
Net Income	-88.30M	-165.12M	-365.54M	-451.91M	-370.91M	-202.80M
Balance Sheet
Total Assets	979.75M	1.07B	1.48B	1.62B	2.37B	1.72B
Cash, Cash Equivalents and Short-Term Investments	14.26M	29.34M	140.07M	419.51M	1.13B	1.06B
Total Debt	573.46M	752.34M	1.23B	985.76M	1.14B	347.38M
Total Liabilities	827.81M	1.10B	1.35B	1.14B	1.45B	496.95M
Stockholders Equity	151.94M	-30.95M	122.15M	475.24M	915.19M	1.23B
Cash Flow
Free Cash Flow	-106.24M	-100.52M	-536.31M	-133.30M	-597.10M	-366.58M
Operating Cash Flow	-103.68M	-97.04M	-533.68M	-109.06M	-568.69M	-355.25M
Investing Cash Flow	-8.57M	132.57M	173.15M	-164.21M	-104.29M	-11.33M
Financing Cash Flow	-11.49M	-165.99M	97.34M	-469.49M	797.71M	1.24B

Vroom, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRMT	67 Neutral	$374.40M	21.57	3.45%	―	-0.21%	―
Sector *	61 Neutral	$17.24B	11.48	-5.97%	3.08%	1.37%	-15.54%
CWH	59 Neutral	$1.78B	―	-3.66%	2.87%	5.15%	48.98%
RDNW	51 Neutral	$113.40M	―	-246.90%	―	-14.27%	67.06%
UXIN	42 Neutral	$782.41M	―	260.24%	―	―	―
VRM	42 Neutral	$155.21M	―	-45.88%	―	-90.19%	79.52%
KXIN	38 Underperform	$7.68M	―	-86.66%	―	-100.00%	85.07%

Vroom, Inc. Corporate Events

Vroom, Inc. Reports Q2 2025 Financial Results

On August 7, 2025, Vroom, Inc. announced its financial results for the second quarter ending June 30, 2025, highlighting a consolidated total available liquidity of $55.9 million and a net loss of $8.9 million. The company reported a decrease in net loss year-over-year, attributed to operational improvements and better loan portfolio performance at UACC. Vroom’s emergence from a Prepackaged Chapter 11 Case earlier in January 2025 led to the application of fresh-start accounting, affecting the comparability of its financial statements before and after this date.

Vroom Warrants Begin Trading on OTCQX Market

On July 7, 2025, Vroom, Inc. announced that its warrants will trade on the OTCQX® Best Market under the symbol “VRMMW”, with trading expected to commence on the same day.

Vroom, Inc. Concludes Annual Stockholders Meeting

On June 12, 2025, Vroom, Inc. held its Annual Meeting of Stockholders, where 4,643,281 shares were represented, accounting for approximately 89.93% of the company’s outstanding common stock. During the meeting, eight directors were elected for terms ending in 2026, and the appointment of RSM US LLP as the independent registered public accounting firm for 2025 was ratified. Additionally, the compensation of the company’s named executive officers was approved on an advisory basis.

Vroom, Inc. Reports Q1 2025 Financial Results

On May 14, 2025, Vroom, Inc. announced its financial results for the first quarter ending March 31, 2025. The company reported a consolidated total available liquidity of $66.9 million, with a net loss of $6.5 million from continuing operations. Significant developments included the completion of a recapitalization of unsecured convertible senior notes, resulting in no long-term debt, and the extension of $400 million in warehouse agreements. The company also closed UACC’s 17th securitization transaction, issuing $324 million of fixed-rate asset-backed notes. These measures are part of Vroom’s strategy to strengthen its financial position and support long-term growth.